In the long run, a monopolist can continue to earn economic profits.
Answer the following statement true (T) or false (F)
True
The existence of barriers to entry allows monopolists to earn economic profits in the long run.
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Because demand curves slope downward according to the Law of Demand, the price elasticity of demand is a negative number
What will be an ideal response?
If the number of buyers in a market decreases, then
a. demand will increase. b. demand will decrease. c. supply will increase. d. supply will decrease.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
What will be an ideal response?
Central planning is an ineffective method to organize an economy because
A) central planners do not respond predictably to incentives. B) central planners cannot possibly obtain all the information necessary to allocate resources efficiently. C) most central planners are less intelligent than business entrepreneurs in market economies. D) central planners have inadequate funding to meet the needs of their constituents.